Business

Google Misses Estimates for Revenue, Earnings in Q3

Googles stock tumbled in after hours trading after the company missed Wall Street estimates for revenue and earnings in the third quarter

The search giant reported earnings of $6.35 per share on revenue of $16.52 billion for the September quarter, coming in slightly below the consensus estimate among analysts for earnings of $6.53 per share on revenue of $16.57 billion.

Both classes of Google stock — the company split its stock in April — dipped by as much as 5% in after hours trading Thursday following the news.

The average cost-per-click, a closely watched metric for the company, declined by about 2% year-over-year as the company continues to struggle with ad prices amid the shift to mobile. The number of paid clicks increased by about 17%, a slower rate of growth than some analysts had expected and decelerating from a year earlier.

Google remains by far the dominant player in the mobile ad industry, with about half of the market, according to data from eMarketer, but its share is slowly declining while competitors like Facebook gradually gain ground.

Earlier this week, Google announced its latest operating system as well as a new Nexus smartphone and tablet. In recent months, Google has offered more products for emerging markets, invested in drones and satellites and doubled down on shopping delivery service, putting it in closer competition with Amazon.

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